The economic analysts of Brazil they revised their projections upwards inflation by 2023, after the state company Petrobras (Petróleo Brasileiro SA) will increase the values iinterns of the fuels.
This move had a negative impact on the prospects of getting growth rate of prices falls within the range goal set for this year.
According to a weekly survey conducted by the central bank and published this MondayAugust 21, consumer prices are expected to register an increase of 4.9% during the present year. This figure contrasts with the previous estimate of the 4.8%.
Brazil: what the South American giant expects for the coming years
For the following years, it is anticipated that inflation per year will decrease up to 3.9% in 2024 and a 3.6% in 2025.
The monetary institution aims to achieve an inflation of 3.25% for the current year, followed by a 3% until 2026maintaining a margin of tolerance of approximately 1.5 points percentage.
Monetary policy makers, led by Roberto Campos Netoannounced last week their commitment to the task of reducing the interest rate at 50 basis points at every meeting.
However, they stressed that the threshold for accelerating this pace of cuts is high, as substantial improvements would be required. in cost of living expectations, measures of the output gap and inflation related to services.
In early August, the central bank reduced your reference rate at 50 basis pointsthe Selic index, placing it at a 13.25%, although four board members opted for a smaller cut, of a quarter of a percentage point. According to the analyst survey published this Monday, it is expected that lLoan rates drop to 11.75% in December and 9% at the end of next year.
Despite a recent slowdown in Brazil inflation, this is expected to pick up in August. The decision of the state oil company to raise the wholesale prices of diesel and naphthain response to an increase in international oil costs, is expected to contribute to this rebound.
Therefore, the monetary authority projects a 0.40 percentage point increase in inflation expectations for the next two months.
Source: Ambito
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